A landlord must give a 90-day notice to his tenant if he plans to increase the rent, which has to be based on Real Estate Regulatory Agency’s (Rera) rent index, the Dubai Land Department (DLD) has said.
In response to a query on Twitter, the DLD said: “Landlord can only increase tenant’s rent if it is equal or less than the market value by 26 per cent or more, as per the index issued and updated by Rera, provided the landlord gives a 90-day notice period.
“If current rent is lower than the index by 26 to 35 per cent, the increase will be 5 per cent; 36 to 45 per cent, the increase is 10 per cent; 45 to 55 per cent, the increase is 15 per cent and over 55 per cent the increase should be maximum of 20 per cent.”
The rent increase calculator can be accessed online at www.dubailand.gov.ae
The increase is due every year from the first renewal, the DLD said, adding in case of dispute, the Dubai Municipality Rental Dispute Committee needs to be approached, provided the rent lease agreement is registered in Ejari.
A number of residents have been complaining of unjustified rent hike by their landlords.
S Kristen, who has rented a two-bed apartment in the Greens, told Emirates 24/7: “ I haven’t been given a 90-day notice by my landlord as my tenancy contract gets over in May. I was informed of the rent hike last week. I have checked the Rera calculator, which states no increase.”
He asserts: “I don’t intend to file a complaint with the Dubai Municipality. I would vacate since I want to stick to my budget and not exceed it in any case.”
Emirates 24/7 first reported in October 2012 that landlords had started arbitrarily increasing rents, ignoring the rental calculator set up by Rera for the purpose.
Tenants living in Jumeirah Lakes Towers, Discovery Gardens and the Springs, said their landlords were telling to accept the new rent or vacate the apartment.
B Brian, who stays in Discovery Gardens, had said: “My landlord has hiked my rent by Dh6,000. I am currently paying Dh39,000 for a one-bed, while the Rera rent calculator shows no increase. My landlord told me to pay or leave since his agent has already found someone who was willing to pay Dh45,000 in two cheques.”
Earlier this week, Jones Lang LaSalle (JLL), a global property consultancy, said residential rents in Dubai rose 10 per cent year-on-year in the first quarter of the year, with established areas in expected to witness further rental growth over the rest of 2013.
Rents have mainly increased in areas such as Burj Downtown, Dubai Marina and Palm Jumeirah, but have remained stable in secondary and less completed locations.
“Well-established residential communities in central Dubai are expected to see further price and rental growth over the rest of 2013, while less completed projects in more remote areas will need more time before seeing increased demand and performance,” JLL said.